Stein Mart stumbles in third quarter

JACKSONVILLE, FL — The elimination of full-price coupons, a strategy Stein Mart started in July, will likely dampen results through the remainder of the year.

Stein Mart's comps suffered every month during the third quarter because of the coupon shift — and November and December will also be difficult, president and ceo Mike Fisher said during the company's quarterly conference call last week. However, once clearance sales begin in January, there will "be more parity in our marketing efforts."

Fourth quarter inventories are cleaner than last year and the chain has made "the proper investment in holiday product," he added.

"We feel our prospects for the coming year are much brighter, and if the economy gains additional traction, we will be able to take full advantage of a more favorable environment."

The six-market test of Stein Mart's "Once You Go You Get It" TV ad campaign, is producing above-chain comp results, he said.

Fisher also said that the new Raymond Waites collection has been "performing well," and the company is "encouraged by the early results."

In contrast, it will take another six to seven months to determine the "usability" of its 15,000-square-foot, small format store, Collections of Stein Mart. One of the three units is operating slightly below expectations; the other two are performing at expectations.

"We'll continue to use those as laboratories, and we have made adjustments to the marketing approach and also the layout of several of the stores," Fisher said.

A fourth location, in Amelia Island, FL, will open in early spring 2004.